Called Invest Protect, the five-year policy will use BlackRock’s ETFs combined with a downside protection facility run by Commerzbank, which will ensure that the unit price of any investment will always be at least 80% of the highest historical price.
“This is an absolutely unique product in the United Arab Emirates,” says Emmanuel Deschamps, head of life insurance at OIC, which is regulated by the UAE’s Insurance Authority.
Features
Other features of the product include a commitment to pay the proceeds of the life insurance cover associated with the policy to a designated beneficiary immediately in the event of a client’s death, and regardless of their country of residence.
Customers can also withdraw their funds at any time during the five years of the policy, although early withdrawals are subject to charges. Assets are held offshore by Euroclear.
Rakesh Sudhakaran, head of bancassurance at OIC said banks and IFAs would play a key role in distributing the product. “We are already seeing strong demand,” he said.
Christopher Hughes, head of structured solutions at Commerzbank added: ‘Invest Protect combines the key strengths of three organisations to produce an attractive investment option for clients offering downside protection.”
